Govt moves to cushion local fuel market amid Iran conflict

The government is working on measures to shield the economy from potential shocks, particularly rising fuel and commodity prices, amid the ongoing US/Israel-Iran conflict, the Minister of Finance and Economic Planning, Yusuf Murangwa has said. “There are immediate effects, usually caused by disruptions in trade, particularly in petroleum products and international goods in general. Typically, fuel prices rise,” he said in an interview with Rwanda Broadcasting Agency. ALSO READ: Rwanda-bound travellers stuck in transit in Middle East According to Murangwa, Rwanda has already begun observing price movements on international markets. Fuel prices have increased by about 10 percent, while other imported goods have risen between 10 and 20 percent. To mitigate the impact, Murangwa said the government is working closely with fuel distributors to maintain sufficient stock levels across the country. “We have already engaged them and are assisting them. We have also spoken with banks to ensure traders have access to sufficient financing to secure adequate stock,” he said. Murangwa noted that if the conflict does not last beyond two weeks or a month, prices could stabilise and return to normal levels. ALSO READ: How significant is Strait of Hormuz in US, Israel-Iran conflict “However, if the war continues beyond a month, we must take additional measures, not only for fuel traders, but also for businesses dealing in petroleum products, manufacturers, and service providers, so that this disruption does not negatively affect our economy.” The minister emphasised that while Rwanda does not operate under the assumption that war is imminent, the country has mechanisms to quickly mobilise financial resources during global crises. He added that Rwanda’s national fuel reserves remain stable and would cushion the country against short-term supply disruptions. “Should the conflict persist, the government would work with traders to identify alternative supply sources to avoid severe shortages,” he said. ALSO READ: Suspension of RwandAir flights to Middle East continues Murangwa noted that this is not the first time the world has faced such challenges. “In the past, we have managed similar situations without experiencing severe consequences, and we remain confident that we will not face major impacts this time either,” he said. He stressed that such crises highlight the need for greater self-reliance in essential goods and services, particularly daily necessities and industrial products. “However, no country can be fully self-sufficient in everything. Therefore, we must always diversify our markets. If one market where we export or import goods faces disruption, we should have alternative markets to rely on.”

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Govt moves to cushion local fuel market amid Iran conflict